MetLife 2005 Annual Report Download - page 98

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METLIFE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
The Company had the following types of guarantees relating to annuity and universal and variable life contracts at:
Annuity Contracts
December 31,
2005 2004
In the Event of At In the Event of At
Death Annuitization Death Annuitization
(In millions)
Return of Net Deposits
Separate account value ******************************************** $ 9,577 N/A $ 6,925 N/A
Net amount at risk************************************************* $ 3(1) N/A $ 22(1) N/A
Average attained age of contractholders******************************* 60 years N/A 60 years N/A
Anniversary Contract Value or Minimum Return
Separate account value ******************************************** $ 80,368 $ 18,936 $ 43,414 $ 14,297
Net amount at risk************************************************* $ 1,614(1) $ 85(2) $ 990(1) $ 51(2)
Average attained age of contractholders******************************* 61 years 59 years 61 years 58 years
Two Tier Annuities
General account value ********************************************* N/A $ 299 N/A $ 301
Net amount at risk************************************************* N/A $ 36(3) N/A $ 36(3)
Average attained age of contractholders******************************* N/A 58 years N/A 58 Years
Universal and Variable Life Contracts
December 31,
2005 2004
Secondary Paid Up Secondary Paid Up
Guarantees Guarantees Guarantees Guarantees
(In millions)
Account value (general and separate account) ********************************** $ 7,357 $ 4,505 $ 4,715 $ 4,570
Net amount at risk ********************************************************** $124,702(1) $39,979(1) $94,163(1) $42,318(1)
Average attained age of policyholders****************************************** 48 years 54 years 45 years 52 years
(1) The net amount at risk for guarantees of amounts in the event of death is defined as the current guaranteed minimum death benefit in excess of the
current account balance at the balance sheet date.
(2) The net amount at risk for guarantees of amounts at annuitization is defined as the present value of the minimum guaranteed annuity payments
available to the contractholder determined in accordance with the terms of the contract in excess of the current account balance.
(3) The net amount at risk for two tier annuities is based on the excess of the upper tier, adjusted for a profit margin, less the lower tier.
The net amount at risk is based on the direct amount at risk (excluding reinsurance).
The Company’s annuity and life contracts with guarantees may offer more than one type of guarantee in each contract. Therefore, the amounts listed
above may not be mutually exclusive.
Liabilities for guarantees (excluding base policy liabilities) relating to annuity and universal and variable life contracts are as follows:
Annuity Contracts Universal and Variable Life
Contracts
Guaranteed
Guaranteed Annuitization Secondary Paid Up
Death Benefits Benefits Guarantees Guarantees Total
(In millions)
Balance at January 1, 2004 *************************************** $ 9 $17 $ 6 $25 $ 57
Incurred guaranteed benefits ************************************** 23 2 4 4 33
Paid guaranteed benefits****************************************** (8) — (4) — (12)
Balance at December 31, 2004 *********************************** 24 19 6 29 78
Incurred guaranteed benefits ************************************** 22 10 10 10 52
Paid guaranteed benefits****************************************** (5) — (1) — (6)
Balance at December 31, 2005 *********************************** $41 $29 $15 $39 $124
Account balances of contracts with insurance guarantees are invested in separate account asset classes as follows at:
December 31,
2005 2004
(In millions)
Mutual Fund Groupings
Equity ******************************************************************************************* $58,461 $31,829
Bond******************************************************************************************** 6,133 3,621
Balanced **************************************************************************************** 4,804 1,730
Money Market ************************************************************************************ 1,075 383
Specialty***************************************************************************************** 1,004 245
Total ***************************************************************************************** $71,477 $37,808
MetLife, Inc.
F-36